Cost and return analysis of potato production in Gujarat

Abstract

Potato (Solanum tuberosum L.), a globally significant crop, plays a vital role in food security and agricultural income. This study examined potato cultivation in Gujarat, focusing on five major producing districts: Banaskantha, Sabarkantha, Aravalli, Gandhinagar and Mehsana. A multistage sampling of 200 contract farmers (42 small, 66 medium, 92 large) analyzed input use, cost structures and profitability using the CACP methodology. Results revealed that small farms rely more on family labour, manure and nitrogen fertilizers, while large farms utilize mechanization, potassium and plant protection chemicals extensively. Total cultivation costs per hectare were highest on large farms (₹ 215943.39), with seed costs contributing 48 per cent of expenses. Gross returns increased with farm size, ranging from ₹ 285217.69 on small farms to ₹ 548178.20 on large farms. Benefit-cost ratios also improved, from 0.24 for small farms to 1.14 for medium farms and 1.54 for large farms, highlighting greater profitability with scale. The study underscored variations in resource allocation, productivity and economic outcomes across farm sizes, offering insights for optimizing potato cultivation practices and enhancing profitability in Gujarat's diverse agro-climatic conditions.